What is your portfolio strategy?

[Vicky78]

Yes apart from your financial goals, it is also important to understand the level of risk you are willing to take to achieve those goals. Based on that you could split your portfolio into 2 parts capital protected schemes(FD,debt etc) and capital unprotected schemes (eg equity,commodity etc). Come up with a ratio between these 2 parts. Stick to that ratio for about 2-3 years. Then review it again.

[swama694]

what is the effect if we creae a diversified portfolio with top sector funds?

[mrindia]

In that case the portfolio becomes extremely volatile. It requires too much vigilence & repeated churning. If u are prepared to take that much risk/intervention with your investments, better go for stocks directly.

[Vicky78]

Exactly!

It defeats the very purpose for going into a mutual fund, where its left to the fund manager to break his head over sector and stocks.

[swama694]

hi

can annyone please suggest what is the effect if we choose to build a portfolio with same amc

for example DSPML

DSPML Equity 25%
DSPML TOP100 25%
DSPML opportunites 8%
DSPML TIGER 8%
DSPML Balanced 30%
DSPML small cap and midcap 4%

I am an NRI and I wish to know this because, it will be easy to get support , easy application process and easy SIP, one folio number and easy to switch or redeem for people who are staying abroad than contacting 5 fundhouses for the same portfolio.

[rka2005lko]

You can purchase any shares at any time but who will guide you for management and correct time for selling??Actualy in m.f. it is done by professionals who devote every minute in trading hours.

[swama694]

but what you told is rite...but i was asking actually, on selecting mutual funds from the same amc

[Vicky78]

Its better to diversify among fund houses. Being a DSP ML fan myself I would still not put all my money into it. The primary reason that I see is that funds of the same fund houses seem to move in tandem. Based on their research results funds of the same fund house seem to move as a pack.

One good example would be HDFC Funds. Couple of years back most people would have considered the following portfolio a gem.

HDFC Equity
HDFC Top 200
HDFC Taxsaver
HDFC Prudence

But today none of the funds are anywhere near thier past glory. Same is the case with Franklin Templeton. Most of their funds them with the exception of Prima Plus have been laggards - franklin Prima, Franklin BlueChip. Both Franklin and HDFC are rated highly in their fund management capabilities. As you see both are going through an underperforming phase. The same could happen to DSP ML.So for a long term equity fund investor, its good to diversify among various fundhouses.

[life2007]

Originally Posted by Vicky78

So for a long term equity fund investor, its good to diversify among various fundhouses.

Hi...Vicky,

I don't know how I missed to sense earlier what you written above. After all debates and discussions, I ended up with a portfolio as below, aiming for long or probably very long term investment.

What is your opinion about it ? Please do reply

1) SBI Contra -Growth
2) DSPML Equity- Growth
3) HDFC Prudence - Growth
4) Birla Sunlife Tax Relief 96 - Payout
5) SBI Magnum Tax Gain - Growth
6) DSPML TIGER - Growth

In fact, I consciously repeated fund Houses, due to other parameters, but now I guess I could have avoided

Thanks

Jeet

PS: Also after March this year, I would like to opt out of one ELSS, please advise which is best SBI Magnum or Sunlife Tax Relief ?

[Vicky78]

this looks ok life2007. At the most you have only 2 funds from the same fundhouse. Swama's query was building a portfolio of funds all from the same fund house. So your portfolio is a well diversified among various fundhouses

I personally would go with Birla sunlife tax relief and discard Magnam Taxgain. Again that depends as both of them are good funds.